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Goldman Sachs Will Pay
Penalty for Bond Trades

By

John Connor, Gregory Zuckerman, Susanne Craig and

John R. WilkeStaff Reporters of The Wall Street Journal

Updated Sept. 4, 2003 12:24 a.m. ET

Goldman Sachs Group Inc. has agreed to pay more than $9 million to settle civil charges by the Securities and Exchange Commission for failing to stop its traders from taking positions ahead of news in 2001 that the Treasury Department was ending sales of 30-year bonds, according to people close to the situation. Goldman Sachs Group profited from the Treasury news, which sparked the biggest bond-market rally in 14 years.

The SEC also will charge a former senior Goldman economist, John Youngdahl, and a Wall Street consultant,...